Registration & Licensing

California is requiring an adviser that is transitioning its SEC registration to state registration in multiple states to change the choice of law provision in its advisory agreement from its home state (not California) to California. Does anyone know of … Continued

California has been extremely tough, but also extremely fair, with transitioning SEC investment advisers. The thoroughness of those individuals tasked with reviewing application material has been impressive. Don’t get me wrong, dealing with California is a pain in the behind, … Continued

Despite all hopes to the contrary, there has been nothing easy about the registration transition process. It has become obvious that some states are ill-prepared to handle the crush of transitioning SEC advisers.

The SEC Final Rule Release that sets forth the increase in assets under management (AUM) threshold for SEC registration clearly states that the SEC is going to automatically deregister on June 28, 2012, any adviser that does not have the … Continued

The Massachusetts Securities Division recently adopted new regulations related to investment advisers.  The new regulations became effective February 3, 2012.  The rules will generally not be enforced until August 3, 2012.  The changes to the regulations did the following: Discretion … Continued

Many states require applicant for state registration to complete an affidavit of “no prior activity.” The choices are typically, no, you have not conducted advisory activities in this state or yes, you have conducted advisory activities in this state. If … Continued

The bombshell in the Dodd-Frank Act for family offices was the revocation of the “less-than-15-client exemption” for private investment advisers. That rule allowed single-family offices to avoid registration with the Securities and Exchange Commission under the Investment Advisers Act of … Continued

For advisers transitioning to state registration, be aware that states, much like the SEC, has enforcement divisions and brings enforcement actions that result in fines. Here is one from Connecticut: Morgan Asset Management, Inc. (IARD # 111715) and Morgan Keegan … Continued

The Colorado division of securities has posted a very helpful power point presentation on its website. It can be found here: www.dora.state.co.us/securities/ In addition, Colorado is one of those states that has waived the registration fee for firms that are … Continued

At least a little bit of good news for transitioning advisers . . . The following states have waived registration fees for transitioning advisers that are currently notice filed in the state: Alabama, Arkansas, Colorado, DC, Georgia, Idaho, Illinois, Iowa, Kentucky, Maryland, Michigan, Massachusetts, Minnesota, Mississippi, New Hampshire, … Continued

Best wishes to all our readers for a Happy and Healthy and Prosperous 2012. Remember to log on to your IARD account on January 3rd to obtain your firm’s Final Renewal Statement. Firm’s may have incurred additional fees between the … Continued

SEC-Registered Investment Advisers: Between January 1, 2012 and March 30, 2012, ALL SEC-registered advisers, and advisers who have an application for registration pending with the SEC, must file a Form ADV amendment (annual updating amendment or other-than-annual amendment), completing ALL … Continued

The North American Securities Administration Association (“NASAA”) recently announced a Coordinated Review Program (the “Program”) to assist investment advisers with the switch from federal to state registration.  Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, most investment advisers … Continued

Just a reminder that the deadline for payment of your firm’s annual renewal fees is December 12th. Don’t wait until the deadline to pay as the IARD system may take up to a week to process payments.

On November 2, 2011, the Massachusetts Securities Division proposed new regulations that would 1.) change the requirements for investment advisers with discretion or custody of client funds; 2.) change the definition of “institutional buyer” found in the regulations; and 3.) … Continued

The FINRA Entitlement Program provides authorized users a secure means to access participating applications with a single user ID and password. Once an investment adviser (IA) firm completes the entitlement process, it will obtain access to the IARD system in … Continued

The Texas State Securities Board is sending out the following email: “The Registration Division of the Texas State Securities Board is aware that your investment adviser firm may be required to switch from SEC registration to state registration as a … Continued

Today began the annual registration renewal period. I have to say, the people at the IARD system are extremely helpful. Kudos to them.

Just a reminder that the annual registration renewal period begins on Monday, November 14th. Advisers must log on to their IARD account and obtain their firm’s Preliminary Renewal Statement. Fees must be paid by December 12th. Always best to start … Continued